Shares often get cheaper after the IPO cools off

The Ticker

September 17, 1999|By Julius Westheimer

INTERESTED in getting in on the ground floor of all those hot IPOs? Wait, advises Linda Killian, manager of IPO Aftermarket Fund.

"Don't jump in and buy initial public offerings (IPOs) too quickly," she says. "Hot IPOs can double or triple on the first day, but then fall back. Wait a while and you might pay substantially less."

COKE & VIAGRA: "Prices of many hi-tech stocks will collapse," says Personal Finance. "There are few examples of hi-valuation tech stocks doing well long-term. Of the Nifty Fifty stars of the early 1970s, the only strong performers were consumer franchises such as Coca-Cola Co. or drug companies like Pfizer Inc."

WALL STREET WATCH: These stocks are included under "Financially Strong Favorites" in the latest S&P Outlook: Cisco Systems Inc., Computer Sciences Corp., Dell Computer Corp., Home Depot Inc., Staples Inc. and Starbucks Corp.

"Money market funds are the perfect place to invest a large portion of money you want to keep liquid. They're also a good safe haven to park your assets during periods of economic uncertainty or disaster." ("Big Decisions," Small Investor)

"With inflation low and profits strong, the Dow will reach 13,500 next year -- after peaking at 11,500 late this year." (Robert Stovall, money manager)

"There are good reasons to be bullish about the long-term outlook for bonds. Mainly, the Fed is committed to keeping inflation at a low level." (Bank Credit Analyst)

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